Etoro Review 2024

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Last update: 4 months ago

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eToro is widely recognized for its user-friendly interface and broad array of trading options, making it a popular choice for those new to cryptocurrency investments. It offers a distinctive social trading platform where users can replicate the transactions of experienced traders, adding a collaborative dimension to trading which is particularly beneficial for beginners. This feature not only simplifies the trading process but also serves as an educational tool, helping users learn from more experienced traders.

However, eToro is not without its drawbacks. The platform operates on a spread-only basis for crypto trading, which can sometimes result in higher fees compared to other exchanges that offer a more conventional fee structure. Additionally, while eToro provides a robust selection of cryptocurrencies and trading pairs, it might not offer as much depth in market data as some other platforms, which could be a limitation for more advanced traders. Despite these considerations, eToro remains a strong contender in the cryptocurrency exchange market, particularly for those who value a simple, interactive approach to trading.

Pros

Cons

4,9

Threenvest Score

Fees

hidden

U.S Legal

Yes

With the confidence of Threenvest

Year Founded: eToro was established in 2007, demonstrating a long-standing presence in the financial markets. This longevity in the industry underscores its experience and resilience, adapting to various economic cycles and regulatory environments over the years.

Number of Users: With over 20 million registered users globally, eToro has a substantial user base that reflects its widespread acceptance and trust among investors. A large community not only signifies a trusted platform but also enhances the social trading experience by providing more insights and strategies to follow.

Security Methods: eToro employs advanced security protocols to protect user data and funds. These include SSL encryption, secure login methods, and adherence to strict regulatory guidelines, ensuring a high level of security that meets global standards.

Possible Regulation: eToro is regulated by several respected bodies, including the Cyprus Securities Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC). This regulation is critical for ensuring fair trading practices and protecting the interests of investors.

Reputation and Reviews: eToro enjoys a positive reputation in the industry, supported by generally favorable reviews from users. Its innovative platform and commitment to user satisfaction have been widely acknowledged in numerous reviews and testimonials, which praise its user-friendly interface and social trading features.

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About Etoro

Introduction

eToro stands out as a pioneering social trading platform, where users not only engage in traditional trading but also share insights, strategies, and real-time trades. This blend of trading and social networking empowers individuals to leverage collective knowledge and experience, making it particularly appealing to new entrants in the cryptocurrency market.

What is eToro?

eToro is a multi-asset platform that offers both investing in stocks and cryptocurrencies, as well as trading CFDs. The unique selling point of eToro is its social trading features which allow users to copy the trades of successful investors and engage with the community for insights and tips.

Background and History

Launched in 2007, eToro was initially conceived as a general trading platform. Over the years, it has evolved significantly, introducing various innovations such as the CopyTrader system, which allows users to mirror the trading strategies of other successful traders automatically. The platform expanded its offerings to include cryptocurrencies in 2014, recognizing the growing interest and potential in digital assets.

Founders

The brainchild of brothers Yoni and Ronen Assia, together with their partner David Ring, eToro was founded with the vision of making trading accessible to anyone, anywhere, and reducing dependency on traditional financial institutions. The founders aimed to integrate the social elements of the internet with trading, introducing a collaborative approach to the market.

Interesting Facts

eToro was one of the first platforms to offer Bitcoin trading in the form of CFDs.
The platform has grown to serve over 20 million users worldwide.
It provides a patented CopyTrading technology, which has been emulated by several other trading platforms but never duplicated with the same level of success.

Fun Fact

In its early days, eToro featured gamification elements in its platform, including championship competitions that awarded top traders with various prizes, blending financial trading with the competitive spirit of online gaming. This blend of comprehensive trading tools, a strong emphasis on community, and a focus on accessibility and security continues to attract a broad user base, maintaining eToro’s reputation as a leader in the social trading space.

Why Choose Etoro?

eToro is a prime choice for both newcomers and experienced traders seeking a user-friendly and innovative trading platform. Its standout feature, the social trading aspect, is perfect for those who might feel daunted by the complexities of the financial markets. This feature allows users to observe and copy trades from seasoned investors, providing a valuable learning curve and an insight into strategic trading without the need for extensive personal experience. Additionally, eToro’s user-friendly interface ensures that navigating the complexities of cryptocurrency and stock trading is straightforward and accessible, even for those with minimal trading background.

Security and regulation are paramount in choosing a trading platform, and eToro excels in both. The platform is regulated by several top-tier financial authorities, ensuring that users’ investments are handled with utmost integrity and in compliance with stringent financial standards. This regulatory oversight provides a strong level of protection for users’ funds, making eToro a reliable and trustworthy option for engaging with the financial markets. Moreover, the platform’s commitment to providing a secure trading environment is evident through its use of advanced security technologies to safeguard users’ information and assets.

Furthermore, eToro offers a diverse range of trading options not just limited to cryptocurrencies but also including stocks, commodities, and forex. This variety allows users to diversify their investment portfolio all within a single platform, enhancing the potential for risk management and exposure to different markets. The additional resources like real-time data feeds, analytical tools, and the personalized, social news feed provide users with the insights needed to make informed trading decisions. These features, combined with the platform’s robust educational resources, empower eToro users to expand their trading knowledge and skills continually. For anyone looking to engage with the financial markets in a dynamic and supportive environment, eToro presents a compelling option that caters to a wide range of trading needs and preferences.

Where it falls short

1. Fee Structure: One of the major drawbacks of eToro is its fee structure, particularly the spread fees which can be higher than those of its competitors. This can affect the profitability of traders, especially those engaging in frequent or small-volume trades. Improvement: To become more competitive and appealing, eToro could consider lowering its spread fees or introducing a more transparent and flat-rate fee structure that could simplify costs for users and make the platform more attractive for high-volume traders.

2. Limited Advanced Trading Tools: While eToro excels in social trading and user-friendly features, it lacks advanced tools that more experienced traders look for, such as extensive charting capabilities, advanced order types, and deeper analytical tools. Improvement: eToro could enhance its appeal to professional traders by expanding its toolset to include more sophisticated trading and analysis software. Integrating features like technical indicators, drawing tools, and customizable interface options would provide the necessary depth that experienced traders require.

Features	Explanation
Minimum Trade	eToro offers a low minimum trade amount, making it accessible for beginners yet slightly higher than some competitors.
Trading and Transaction Fees	Fees are higher due to spread pricing; beneficial for less frequent, larger trades.
Number of Cryptocurrencies	Offers a moderate range of popular cryptocurrencies but lacks some of the lesser-known altcoins.
Crypto-to-Crypto Trading Pairs	A decent variety of trading pairs available, though not as extensive as larger exchanges.
Website Transparency	eToro provides clear information on fees and features but could improve in showing all terms upfront.
Credit/Debit Card	eToro does not provide an exchange card for in-store purchases and associated benefits based on the available data.
Storage Offering	Provides a secure digital wallet app but less control compared to dedicated wallet services.
Staking and Rewards	Offers staking for some cryptocurrencies with rewards, but the options and rates are limited.
Mobile App and Desktop	Both mobile and desktop platforms are user-friendly and highly functional.
Customer Service	Good customer support with multiple channels available, though response times can vary.
Deposit and Withdraw	Easy deposit and withdrawal processes, but some users may find the withdrawal fee structure cumbersome.

Xavier Tarrasó

EIP and Cryptocurrency Investor

At Threenvest, we understand the importance of choosing the right cryptocurrency exchange for your trading and investment needs. eToro, with its distinctive blend of social trading features and a user-friendly platform, presents a compelling option for those new to cryptocurrency trading as well as seasoned traders seeking a more community-oriented trading environment. The platform stands out for its wide array of cryptocurrencies, including popular choices like Bitcoin and Ethereum, as well as its innovative social trading tools that allow users to learn from peers and mimic successful traders’ strategies. These features make eToro particularly attractive to users who value a collaborative approach to trading. However, it’s important to weigh eToro’s offerings against its limitations. Compared to other exchanges, eToro’s fee structure, primarily based on spreads, may be higher, particularly for less popular cryptocurrencies or during volatile market conditions. Additionally, while eToro offers a robust platform that caters well to beginners and intermediate users, advanced traders might find the technical tools insufficient for complex strategies. At Threenvest, we recommend eToro for users who prioritize ease of use, educational resources, and social trading capabilities. For those requiring advanced trading capabilities and lower fee structures, exploring other platforms might be advisable. Ultimately, aligning your specific trading style and needs with the features offered by eToro will determine if this platform is the right choice for you.

Fees

eToro’s commission structure primarily revolves around spread-based pricing, which can be relatively higher than some of its competitors, making it less ideal for traders who engage in frequent small trades. This means that the cost of a transaction is built into the buy and sell price of each trade, leading to no explicit commission fees but a varying spread cost depending on the asset being traded. Additionally, eToro charges a withdrawal fee and an inactivity fee if an account is not used for a certain period. These fees are somewhat offset by the absence of management or ticketing fees, which makes it attractive for users who trade less frequently but with higher volumes. Understanding these nuances is crucial for traders to manage trading costs effectively on eToro.

Pros

No Management Fees: eToro does not charge any management or ticketing fees, making it cost-effective for traders who hold investments over a longer period without frequent transactions.
No Deposit Fees: eToro allows users to deposit funds without any charges, reducing the overall cost for traders looking to fund their accounts, which is especially beneficial for regular and smaller depositors.
Transparent Spread-Only Model: The spread-only model used by eToro means that all trading costs are included in the spread, providing clarity and predictability in trading expenses without additional commission fees.

Cons

Higher Spread Costs: The spread costs can be higher than those of competitors, especially for less commonly traded assets, which might deter frequent traders due to increased trading costs.
Inactivity Fee: eToro charges an inactivity fee when an account is not used for a certain period, which can be a disadvantage for users who do not trade regularly or forget to close their accounts.

In-Depth Analysis of eToro’s Commissions on Cryptocurrency Transactions

When it comes to engaging in cryptocurrency transactions, understanding the commission structure of your trading platform is paramount to ensuring that your investments are both profitable and sustainable. eToro, recognized for its innovative approach to trading with its social trading features, employs a unique commission model that is crucial for traders to understand. This analysis delves deeply into eToro’s fee structure for buying and selling cryptocurrencies, evaluating the nuances of its cost implications and providing context within the broader digital currency exchange market.

eToro’s Commission Model for Cryptocurrencies

Spread-Only Fees: eToro uses a spread-only model for cryptocurrency transactions, which means the trading costs are incorporated into the spread—the difference between the buy (ask) and sell (bid) prices. This model is fairly transparent and user-friendly, particularly beneficial for novice traders who might find detailed fee structures overwhelming. For instance, if Bitcoin is listed with a buy price of $20,000 and a sell price of $19,900, the $100 difference represents the cost of the transaction, which includes eToro’s fees.
Analysis of Spread Costs: Spreads at eToro are variable and can be influenced by market conditions such as volatility and liquidity. Typically, eToro’s spreads for popular cryptocurrencies like Bitcoin, Ethereum, and Ripple are competitive but may not always be the lowest available in the market. For major cryptocurrencies, the spreads can start from a relatively low percentage but can increase significantly for less common crypto assets or during periods of high market volatility. This variability is an essential factor for traders who need to strategize their entry and exit points precisely to manage costs effectively.
Comparison with Industry Standards: Compared to other major platforms, eToro’s spread-only model might result in higher costs during normal trading conditions, especially for day traders who execute multiple trades throughout the day. For example, other leading exchanges might offer a tiered commission structure based on volume which can significantly reduce per-trade costs for high-volume traders. However, eToro’s model simplifies the fee structure, making it easier for less experienced users to understand exactly how much they will pay per trade without needing to navigate complex fee schedules.

Hidden Costs and Considerations

Overnight and Weekend Fees: For cryptocurrency CFDs, eToro charges overnight or weekend fees, also known as rollover fees, which are costs incurred for keeping a position open beyond a certain period. These fees can add up, particularly for positions held over longer periods, and should be factored into the cost-benefit analysis of long-term trades.
Inactivity Fees: One of eToro’s less favorable fees is the inactivity fee. Traders who do not log in and trade for a period of 12 months or more are charged $10 per month. This can impact traders who do not trade regularly or forget about small balances left in their accounts.
Withdrawal Fees: eToro charges a flat fee of $5 on all withdrawals. The minimum withdrawal amount is $30. This fee is relatively standard across the industry, though some platforms do offer free withdrawals.

Strategic Implications for Traders

Traders on eToro benefit from a user-friendly interface and a community-driven environment, but they must manage their trading strategies to align with the fee structure. The spread-only model, while simple, can be more expensive for active traders who might benefit from a volume-based fee reduction typically offered by other exchanges. Long-term traders need to be wary of rollover fees, which can diminish profitability on extended trades. In conclusion, while eToro’s fee structure for buying and selling cryptocurrencies is straightforward and conducive to new traders, it requires careful consideration and strategic planning for cost management, especially for those looking to trade frequently or hold long-term positions. Understanding these fees in the context of personal trading habits and market conditions is crucial for achieving optimal trading outcomes on eToro’s platform.

Product selection

eToro offers a comprehensive range of services and products in the cryptocurrency space that caters to both novice and experienced traders. As a multi-asset platform, eToro enables users to buy, sell, and trade a variety of popular cryptocurrencies including Bitcoin, Ethereum, XRP, and more, directly or via CFDs with competitive spread-based pricing. Unique to eToro is its social trading feature which allows traders to copy the transactions of successful traders automatically, integrating the social aspect into investment strategies. Additionally, eToro provides a secure wallet service for storing cryptocurrencies, adding an extra layer of security for users. The platform also offers staking services for selected cryptocurrencies, providing users with the opportunity to earn rewards on their holdings, further enhancing its investment appeal. Through its user-friendly mobile and desktop platforms, eToro combines trading convenience with access to advanced trading tools and real-time data, making it a versatile choice for engaging with the cryptocurrency markets.

Pros

Social Trading Capabilities: eToro sets itself apart with its social trading platform, allowing users to follow and copy the trades of experienced and successful cryptocurrency traders. This not only demystifies the trading process for newcomers but also enhances learning opportunities by observing real-time trading strategies and market moves.
Integrated Wallet and Staking Services: eToro provides an integrated digital wallet that supports multiple cryptocurrencies, offering a secure way to store digital assets. Additionally, the platform offers staking services, enabling users to earn rewards on their cryptocurrency holdings, which can generate a passive income stream.
Comprehensive Cryptocurrency Selection: The platform offers a robust selection of popular cryptocurrencies, allowing users to trade in major coins such as Bitcoin, Ethereum, and Ripple, among others. This variety caters to both those looking to trade mainstream cryptocurrencies and those interested in a broader portfolio that includes emerging altcoins.

Cons

Higher Spread Costs: While eToro’s spread-only fee model simplifies the cost structure, it can be higher than those of competitors, particularly during periods of high volatility. This can make trading less cost-effective, especially for frequent traders or those trading in less liquid or more volatile markets.
Limited Advanced Trading Tools: Although eToro is excellent for beginners and intermediate users, it may not satisfy advanced traders seeking sophisticated trading tools and capabilities. The platform's focus on simplicity and social trading might come at the expense of advanced features like complex charting tools, detailed analytical instruments, and more granular control over trade execution.

Read more about product selection in Etoro

Comprehensive Overview of eToro’s Cryptocurrency Services and Products

eToro stands as a versatile and innovative platform in the cryptocurrency trading space, offering a wide array of services and products tailored to meet the needs of both novice and experienced traders. Here’s a deep dive into the extensive features available on eToro, explained in simple terms to aid understanding for non-experts.

Trading and Financial Products

Leveraged Trading: eToro offers leveraged trading on many of its cryptocurrency assets. This allows traders to multiply their exposure to the market with a smaller initial investment. However, it’s important to note that while leverage can increase potential profits, it also increases potential risk.
Cryptocurrency Spot Trading: Users can buy and sell cryptocurrencies at current market prices and hold them in their eToro wallet. This is ideal for those looking to invest in cryptocurrencies over the long term.
CFDs (Contract for Differences): eToro provides opportunities to trade cryptocurrency CFDs, allowing users to speculate on price movements without owning the actual cryptocurrencies. This method can be advantageous for capitalizing on markets moving up or down.
Futures and Derivatives: While eToro primarily focuses on CFDs, its derivatives offering allows for risk management and strategic trading approaches, though these tools are more suited to experienced traders.

Wallets and Security

eToro Wallet: A secure digital wallet provided by eToro that supports multiple cryptocurrencies. This wallet allows users to transfer cryptocurrencies to and from the eToro trading platform as well as between other wallets.
Staking Services: eToro offers staking rewards on certain cryptocurrencies. Staking involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network and, in return, earning rewards from the network.
Additional Features and Utilities
eToro Mobile App: Accessible trading on the go is made possible through eToro’s mobile app, available for both iOS and Android. The app includes all the functionality of the desktop platform, including social trading.
Social Trading Features: eToro is renowned for its social trading platform where users can copy the trades of successful traders automatically. This is particularly beneficial for beginners who can learn from experienced traders and mimic their strategies.
eToroX: eToro also offers a professional cryptocurrency exchange, eToroX, which provides more advanced trading options and features for professional traders.
Earn Opportunities: eToro provides several ways to earn income, including staking and possibly other yield opportunities as the market evolves.
Debit Card: Although not universally available, eToro has plans to offer a debit card that will allow users to spend their cryptocurrency holdings or withdraw funds at ATMs worldwide.
Research and Education: eToro offers an extensive range of educational resources, including guides, videos, and a trading academy to help users understand cryptocurrency markets and trading strategies.
API Access: For tech-savvy traders and institutional clients, eToro offers API access to enable automated trading solutions and connectivity to custom software applications.
TradingView Integration: Advanced charting capabilities through integration with TradingView, providing traders with comprehensive tools to analyze markets and devise trading strategies.
Referral Codes and Promotions: eToro frequently offers promotions and referral benefits, providing bonuses for both new and existing users when they meet certain criteria such as depositing funds or trading specific assets.
Demo Account: New users can benefit from a demo account feature, which allows them to practice trading with virtual money and gain confidence without risking actual capital.

Summary

eToro’s comprehensive suite of services and products provides a robust foundation for anyone looking to enter the cryptocurrency market. Whether you’re a beginner interested in learning and copying others’ trades or an experienced trader needing advanced tools and derivatives, eToro offers a scalable platform that grows with your trading skills. Always remember, while the array of features is attractive, each trader must assess their risk tolerance and trading strategy to make the best use of available tools.

Account opening

Opening an account with eToro is a streamlined and user-friendly process designed to facilitate quick access to the trading world. Prospective users start by registering on the eToro website or via the mobile app, providing basic personal information such as name, email address, and phone number. Following registration, eToro requires new users to complete a verification process, a standard practice meant to enhance security and comply with regulatory requirements. This involves submitting a government-issued ID and a proof of address, such as a utility bill or bank statement. Once verified, users can immediately begin funding their accounts using various payment methods including bank transfers, credit cards, or e-wallets like PayPal. eToro also prompts new users to fill out a brief questionnaire assessing their trading experience and knowledge, which helps tailor the platform’s services to their needs. This entire process is designed to be intuitive, ensuring that even those new to trading can navigate through setup with ease and start trading as quickly as possible.

Pros

Streamlined and User-Friendly Interface: eToro's account opening process is highly streamlined and intuitive, making it accessible even to those who are new to trading. The platform guides users through each step clearly and efficiently, reducing the complexity typically associated with financial platforms.
Multiple Deposit Options: Once an account is set up, eToro offers a variety of deposit methods, including bank transfers, credit cards, and e-wallets like PayPal. This flexibility allows users from different geographic locations and with different preferences to easily fund their accounts.
Rapid Verification Process: eToro's verification process is relatively quick compared to many other trading platforms, which can sometimes take several days to process. This speed ensures that new users can start trading almost immediately after completing their application, provided all necessary documents are in order.

Cons

Required Detailed Information: New users may find the detailed information required during the initial questionnaire a bit daunting. eToro asks for financial knowledge and trading experience details to tailor the user’s experience, which can be perceived as intrusive or time-consuming by some.
Geographical Restrictions: Despite its global presence, eToro has geographic restrictions and is not available in several countries. Potential users from these regions are unable to open accounts, which can be a significant drawback for international traders looking to leverage eToro’s platform.

Read more about account opening in Etoro

Comprehensive Guide to Opening an Account on eToro

Opening an account with eToro is designed to be straightforward and accessible, even for those new to cryptocurrency trading. Here’s a step-by-step breakdown of how to get started with eToro, from signing up to making your first cryptocurrency purchase.

How to Sign Up on eToro

Visit the Website: Start by navigating to the eToro website. You’ll find the option to sign up either through the website directly or by downloading the eToro app on your mobile device.
Registration: Click on the ‘Join Now’ or ‘Sign Up’ button. You will need to provide some basic information such as your email address, a chosen username, and a password. Alternatively, you can sign up using your Google or Facebook accounts for quicker registration.
Email Verification: After submitting your registration form, eToro will send a verification link to your email. Click this link to verify your email address and continue the setup process.

KYC and Account Verification

Identity Verification (KYC): Know Your Customer (KYC) is a mandatory process for all eToro users. You will need to verify your identity by uploading documents such as a government-issued ID (passport, driver’s license, or national ID card) and a proof of address (utility bill, bank statement, or council tax bill not older than six months).
Completing Your Profile: Fill out your trading experience and financial knowledge questionnaire. This helps eToro ensure that the services provided align with your experience level and investment goals.

Opening an Account

Choosing the Account Type:
- Retail Account: This is the standard account type that offers access to all trading platforms and instruments, with features like copy trading. It comes with a certain level of leverage.
- Professional Account: For experienced traders who can meet specific criteria, this account offers higher leverage and different margin rules but less regulatory protection.
- Demo Account: eToro offers a demo account loaded with virtual money, allowing new users to practice trading without financial risk.

Buying Your First Cryptocurrency

Funding Your Account: Before you can buy cryptocurrency, you need to deposit funds. eToro supports a variety of payment methods including bank transfers, credit cards, and e-wallets like PayPal.
Navigating to the Cryptocurrency Section: Once your funds are deposited, navigate to the ‘Trade Markets’ section on eToro’s dashboard, then click on ‘Crypto’ to see the available cryptocurrencies.
Making a Purchase: Choose the cryptocurrency you wish to buy and click on it. Enter the amount you want to spend or the quantity of crypto you wish to purchase. Review the transaction details, including the inherent fees, and confirm your purchase.

How to Use eToro?

Using eToro is intuitive even for beginners:

Dashboard Navigation: The user-friendly interface makes it easy to navigate between trades, markets, portfolios, and social feeds.
Placing Trades: To trade, simply select your desired financial asset, set your trading parameters (amount, leverage, stop loss, take profit), and execute the trade.
Using Social Features: Engage with other traders, follow successful users, and even copy their trades directly.

This guide should equip you with the necessary steps to confidently open an account on eToro, make informed trades, and begin engaging with the global markets. Stay tuned for our next guide on how to deposit money into your eToro account.

Security

eToro places a strong emphasis on security to ensure the safety of its users’ assets and personal information. The platform employs advanced security measures including SSL encryption to safeguard data transmissions, two-factor authentication (2FA) for enhanced account protection, and stringent verification processes to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. eToro also uses multi-signature technology to provide additional security for cryptocurrency transactions. On the operational front, eToro stores the majority of client funds in segregated accounts in top-tier banks and uses cold storage for the majority of cryptocurrency holdings to minimize risks associated with online breaches. Furthermore, eToro’s adherence to various regulatory standards across different jurisdictions ensures that it operates with transparency and reliability, maintaining regular audits and reporting to ensure compliance and user trust. This comprehensive security framework demonstrates eToro’s commitment to providing a secure trading environment, making it a trusted platform for traders globally.

Pros

Advanced Security Measures: eToro employs robust security protocols including SSL encryption, two-factor authentication (2FA), and multi-signature technology. These measures ensure that all data transmissions are secure and that access to user accounts and wallets is stringently protected against unauthorized access.
Cold Storage of Cryptocurrencies: A significant portion of eToro’s cryptocurrency holdings is stored in cold storage facilities, which are offline vaults that protect assets from potential online threats such as hacks or unauthorized access. This method is considered one of the safest ways to store cryptocurrencies, significantly reducing the risk of theft.
Regulatory Compliance: eToro is regulated by several top-tier financial authorities, including CySEC in Cyprus, FCA in the UK, and ASIC in Australia. This compliance not only mandates rigorous operational standards but also requires eToro to adhere to strict financial security measures, including client fund segregation and regular external audits.

Cons

Complexity for Beginners: While eToro’s security measures are comprehensive, the range of settings and options available can be overwhelming for beginners. The need to navigate various security protocols and understand each component can be daunting for those new to trading, potentially leading to errors in setting up security features properly.
Dependence on Third-Party Services: Despite its robust internal security measures, eToro relies on external parties for certain services, such as payment processing and parts of its cold storage solutions. This reliance can introduce risks if these third-party services themselves suffer from security flaws or breaches, potentially affecting eToro’s users indirectly.

Security Analysis of eToro: Is eToro Legit?

When it comes to evaluating the legitimacy and security of a cryptocurrency exchange like eToro, several critical aspects need to be considered. These include regulatory compliance, licensing, the implementation of security measures, and the platform’s historical track record.

Regulation and Licensing

eToro operates under the regulation of several highly respected regulatory bodies worldwide. In the UK, it is regulated by the Financial Conduct Authority (FCA), which is known for its stringent guidelines and oversight. In the European Union, eToro is compliant with the Cyprus Securities Exchange Commission (CySEC). It also holds a license from the Australian Securities and Investments Commission (ASIC). These regulatory bodies ensure that eToro adheres to specific financial standards, conducts regular audits, and provides a certain level of transparency and protection that benefits users.

Is eToro Safe?

The simple answer is yes, eToro is considered safe for several reasons:

Segregation of Funds: eToro keeps clients’ funds in top-tier banks, and these funds are segregated from eToro’s own operational funds. This means that users’ money is kept separate from the company’s balance sheets, providing an additional layer of security.
Protection Measures: eToro uses industry-standard security protocols, such as SSL (Secure Socket Layer) encryption, to safeguard users’ information and transactions against cyber threats.
Two-Factor Authentication (2FA): This added security feature requires users not only to enter a password but also to confirm their identity through a second method, typically a text message or app notification, before accessing their accounts.

Security Methods

eToro incorporates multiple advanced security measures to protect its users:

Cold Storage: A substantial amount of the cryptocurrency held by eToro is stored in cold storage, isolated from any internet connection, which protects these assets from potential online hacking attempts.
Multi-Signature Technology: This technology requires more than one key to authorize a cryptocurrency transaction, adding an extra layer of security against theft or unauthorized access.

Historical Track Record

Since its inception in 2007, eToro has built a robust reputation with a strong track record of reliability and transparency. It has progressively adapted to various market demands and regulatory changes, showing a commitment to user safety and ethical business practices. There have been no significant security breaches reported on eToro, further reinforcing its status as a secure platform.

Conclusion

In conclusion, eToro is a legitimate and secure platform for trading cryptocurrencies. The combination of strict regulatory oversight, advanced security measures, and a long-standing reputation in the financial community supports the assertion that eToro is safe for traders and investors. While no platform can be 100% immune to risks, eToro’s continuous efforts to enhance its security infrastructure and comply with international regulatory standards significantly mitigate potential threats and make it a trustworthy choice for users globally.

Customer service

eToro places a strong emphasis on customer service, offering a comprehensive support system designed to assist users effectively and efficiently. The platform provides several avenues for customer support including a detailed FAQ section, a customer service center through email, and a live chat option for more immediate assistance. User reports generally indicate that eToro’s customer service is accessible and helpful, with support staff available to address issues ranging from account queries to trading advice. Moreover, eToro actively collects feedback and reports from its customers to continually improve its services. This feedback loop enhances user satisfaction by ensuring that the platform evolves in line with user needs and preferences. Although response times can occasionally extend during peak periods, the overall consensus from user reviews and reports is that eToro maintains a high standard of customer care, contributing to its reputation as a user-centric trading platform.

Pros

Multiple Support Channels: eToro offers a variety of customer support channels, including live chat, email, and a comprehensive FAQ section. This diversity ensures that users can choose the method that best suits their preferences and needs, whether they require immediate assistance or more detailed support.
User-Focused Improvements: eToro places a strong emphasis on incorporating user feedback into its service improvements. By actively collecting and analyzing customer input, eToro continuously adapts and enhances its service offerings to better meet the evolving needs of its users.
Responsive Live Chat Service: The live chat feature provided by eToro is particularly notable for its responsiveness. Users can expect quick replies to their inquiries, which is crucial in the fast-paced world of cryptocurrency trading where timely information and support can be critical to trading success.

Cons

Potential Delays During Peak Times: While eToro generally provides prompt customer service, users may experience delays during peak trading times or high inquiry volumes. These delays can be frustrating, especially for traders who need immediate support to address issues that may affect their trading activities.
Limited Phone Support: eToro does not prominently offer phone support, focusing instead on digital communication channels. This can be a drawback for users who prefer speaking to a customer service representative directly for solving complex issues or for those who find digital communication less personal or effective.

Read more about customer service in Etoro

Detailed Overview of eToro’s Customer Service

Customer Support

eToro’s customer support is structured to provide comprehensive assistance to users, ensuring that both novice and experienced traders can receive the help they need to make the most out of their trading experience. The platform emphasizes a user-centric approach to service, prioritizing accessible, knowledgeable, and responsive support. This is part of eToro’s broader strategy to maintain a supportive trading environment, encouraging user engagement and long-term loyalty.

Reputation and Customer Feedback

The reputation of eToro’s customer service is generally positive. Users often commend the platform for its proactive approach to customer support and the availability of multiple support options. Feedback from users highlights the effectiveness of the live chat feature, which frequently receives praise for its speed and helpfulness. However, like any service, there are occasional reports of delays during periods of high demand. On financial forums and review sites, eToro’s customer service is typically rated as above average, especially in terms of user engagement and resolution of common trading issues.

Methods of Contact

eToro offers several methods for contacting customer support:

Live Chat: For real-time assistance, eToro’s live chat is available directly through its platform, offering the quickest way to resolve urgent issues.
Email Support: Users can contact eToro support via email, which is suitable for less urgent queries or detailed issues that may require thorough explanations.
Help Center: The platform includes an extensive FAQ section that addresses a wide range of topics, from account management to trading strategies, allowing users to self-serve many common questions and issues.

Response Times

Response times can vary:

Live Chat: Responses are typically quick, with users often receiving help within a few minutes.
Email: Responses via email can take longer, typically within 24 to 48 hours depending on the complexity of the issue and the volume of inquiries at the time.
FAQ and Help Center: Instantaneous, as users can access and search for information immediately.

Additional Considerations

Users looking to engage with eToro’s customer service should consider the following:

Peak Times: During high trading volumes or significant market events, response times can be slower across all platforms. Planning non-urgent inquiries for off-peak times can result in quicker support.
Account Access Issues: For problems related to account access or security concerns, using the direct contact methods like live chat or email is advisable, with detailed descriptions of the issue to expedite the support process.
Educational Resources: eToro offers extensive educational resources that can often provide answers to common questions and issues, reducing the need to contact customer support for general inquiries.

Overall, eToro’s customer service aims to be as inclusive and responsive as possible, offering a variety of contact methods and maintaining a strong reputation among users. By understanding the typical response times and the best ways to use each support option, traders can effectively manage their interactions with eToro’s customer service, enhancing their overall trading experience.

Is eToro Right for You?

Social Trading and Learning Opportunities: If you’re new to cryptocurrency trading or if you’re looking to leverage the collective knowledge of a trading community, eToro’s social trading features might be particularly beneficial. The platform allows you to observe, follow, and copy successful traders. This can be a significant advantage if you appreciate learning from others’ strategies or prefer a more collaborative approach to trading. Additionally, if you find trading to be a solitary activity, the community engagement features of eToro will help you feel connected and supported.
Diverse Range of Trading Instruments: Consider whether the variety of trading instruments offered by eToro meets your investment needs. eToro offers a broad range of cryptocurrencies for direct purchase as well as options to trade crypto CFDs. This is suitable for traders looking to diversify their portfolio beyond just buying and holding cryptocurrencies. However, if your interest extends into more niche coins or if you require advanced derivative products, you might want to evaluate whether eToro’s current offerings satisfy your trading preferences.
User Experience and Platform Interface: eToro is designed with a user-friendly interface that benefits beginners and those who value simplicity and ease of use. The platform integrates advanced trading tools in a manner that is not overwhelming and maintains a clean and navigable interface. If you prioritize a straightforward and visually intuitive trading environment, eToro is likely a good match. However, if you are an experienced trader who needs detailed technical analysis tools and more control over trade execution, you might find eToro’s platform limiting.

Conclusion

eToro is well-suited for users who are looking for a socially enriched trading experience, a variety of cryptocurrency trading options, and a user-friendly platform. It is especially appealing to new or intermediate traders and those interested in diversifying their trading strategies through copying others. Advanced traders might require a deeper look to ensure the technical and analytical tools provided meet their specifications. Always consider your own trading style, risk tolerance, and financial goals when choosing a trading platform.

Etoro compared to other crypto exchanges

Threenvest score

4,9

Fees

hidden

US Legal

Yes

Security

High 4,9/5

On the exhange website

Threenvest score

4,9

Fees

0,20%/0,40%

US Legal

Yes

Security

High 4,9/5

bitpanda

Threenvest score

4,8

Fees

US Legal

Security

High 4,9/5

Available cryptocurrencies and countries available

Overview of Available Cryptocurrencies and Accessible Countries on eToro

eToro offers a comprehensive selection of cryptocurrencies, allowing traders to engage with both popular and some less mainstream digital assets. Key cryptocurrencies available on eToro include major players like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). These assets represent some of the highest market caps and are most frequently traded on the platform. Traders can also find other popular altcoins such as Cardano (ADA), Stellar (XLM), and EOS, providing a diverse range of options for portfolio diversification.

Main Cryptocurrencies Not Available

Despite its extensive offerings, eToro does not currently support some niche or newer cryptocurrencies that might be gaining attention in the crypto community, such as certain DeFi tokens or smaller cap altcoins like Solana (SOL) and Polkadot (DOT). This limitation could be a downside for traders looking to speculate on or invest in the very latest crypto innovations or those seeking high-risk, high-reward opportunities.

Available Countries

eToro prides itself on being a globally accessible platform with operations in over 140 countries. This wide reach includes major markets like the United Kingdom, Germany, Italy, France, Australia, and South Africa, among others. The platform’s regulatory adherence in each jurisdiction ensures a secure and compliant trading environment for international users.

Important Countries Not Supported

However, there are significant restrictions in a few large markets. Notably, eToro is not available to residents of Canada and the USA (with the exception of trading in certain states under specific regulations), due to local financial service regulations and licensing complexities. Additionally, countries under strict financial sanctions or lacking clear cryptocurrency regulatory frameworks might also find accessibility to eToro’s services restricted.

Conclusion

eToro serves a broad international audience with a diverse array of cryptocurrencies, making it an attractive platform for global traders. However, its availability of specific cryptocurrencies and access in certain large markets may affect potential users depending on their geographic location and investment interests. Traders should verify eToro’s current list of supported countries and available cryptocurrencies, as these details can frequently change due to evolving regulatory landscapes and shifts in market demand.

Main cryptocurrencies available

Bitcoin (BTC)
Ethereum (ETH)
Ripple (XRP)
Bitcoin Cash (BCH)
Cardano (ADA)
Litecoin (LTC)
Stellar (XLM)
NEO
EOS
Dash
Ethereum Classic (ETC)
IOTA
TRON (TRX)
Zcash (ZEC)
Tezos (XTZ)
Binance Coin (BNB)
Chainlink (LINK)
Uniswap (UNI)
Dogecoin (DOGE)
Aave (AAVE)
Algorand (ALGO)
Compound (COMP)
Decentraland (MANA)
Enjin (ENJ)
Maker (MKR)
Basic Attention Token (BAT)
Shiba Inu (SHIB)
Yearn.finance (YFI)
Polygon (MATIC)
Filecoin (FIL)
The Graph (GRT)
Avalanche (AVAX)
Solana (SOL)
Cosmos (ATOM)

Main countries where you can open an account

United Kingdom
Germany
France
Italy
Spain
Portugal
Netherlands
Belgium
Poland
Norway
Sweden
Denmark
Finland
Czech Republic
Switzerland
Austria
Ireland
Australia
New Zealand
South Africa
Greece
Romania
Bulgaria
Croatia
Hungary
Russia
Ukraine
United Arab Emirates
Saudi Arabia
Kuwait
Qatar
Luxembourg
Singapore
Hong Kong
Thailand
Malaysia
Philippines
Chile
Brazil
Argentina
Mexico
Colombia
Peru
Nigeria
Egypt
Turkey
Cyprus
Israel
Bahrain
Oman

FAQs

1. What cryptocurrencies can I trade on eToro?

eToro offers a wide range of popular cryptocurrencies for trading, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). Additionally, eToro supports various altcoins such as Cardano (ADA), Stellar (XLM), and NEO, among others, providing ample opportunities for diversification.

2. Is eToro available in my country?

eToro services are accessible in over 140 countries worldwide, including major markets like the UK, Germany, Australia, and South Africa. However, it is not available in countries like Canada, Japan, and others under extensive international sanctions, such as North Korea and Iran. Please check eToro’s website for the most current list of supported countries.

3. What are the fees for trading cryptocurrencies on eToro?

eToro mainly uses a spread-only model for its cryptocurrency trades, meaning the fees are built into the spread between the buying and selling prices. This spread varies by cryptocurrency and market conditions. Additionally, eToro charges a flat $5 fee for withdrawals and an inactivity fee if an account is not logged into for 12 months.

4. How do I deposit funds into my eToro account?

You can deposit funds using various payment methods including credit/debit cards, bank transfers, and e-wallets like PayPal, Skrill, and Neteller. The minimum deposit amount varies by region but generally starts at around $200. Deposits are usually instant, especially for digital payment methods.

5. How secure is eToro?

eToro prioritizes user security with advanced protocols such as SSL encryption, two-factor authentication, and multi-signature technology for cryptocurrency transactions. The majority of client funds are also held in segregated accounts in top-tier banks, and substantial amounts of cryptocurrencies are stored in cold storage.

6. Can I use leverage trading on eToro for cryptocurrencies?

Yes, eToro offers leveraged trading on various cryptocurrencies, allowing you to potentially enhance your returns. However, it’s important to remember that while leverage can increase your profit potential, it also increases your risk of losses.

7. How do I withdraw money from my eToro account?

To withdraw funds, navigate to the ‘Withdraw Funds’ section in your account, enter the amount you wish to withdraw, and choose your withdrawal method. The minimum withdrawal amount is $30, and a $5 fee applies to each withdrawal. Withdrawal times can vary but typically take several business days, depending on your bank or payment service.

Final opinion on Etoro

However, it’s important to weigh eToro’s offerings against its limitations. Compared to other exchanges, eToro’s fee structure, primarily based on spreads, may be higher, particularly for less popular cryptocurrencies or during volatile market conditions. Additionally, while eToro offers a robust platform that caters well to beginners and intermediate users, advanced traders might find the technical tools insufficient for complex strategies. At Threenvest, we recommend eToro for users who prioritize ease of use, educational resources, and social trading capabilities. For those requiring advanced trading capabilities and lower fee structures, exploring other platforms might be advisable. Ultimately, aligning your specific trading style and needs with the features offered by eToro will determine if this platform is the right choice for you.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.